The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6574
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2021
                                ___________
 
 Introduced  by  M. of A. CRUZ -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the administrative code of the city of New York and  the
   tax  law,  in  relation  to  the  imposition of tax on the transfer of
   certain properties in the city of New York

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "COVID-19
 community protection act of 2021".
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 11-2120 to read as follows:
   § 11-2120 RESIDENTIAL REAL PROPERTY SOLD WITHIN TWO YEARS. A. IN ADDI-
 TION  TO  THE  TAX  IMPOSED BY SECTION 11-2102 OF THIS CHAPTER, THERE IS
 HEREBY IMPOSED ON EACH DEED, INSTRUMENT OR TRANSACTION AT  THE  TIME  OF
 TRANSFER  WHEREBY  ANY  PROPERTIES OF ONE TO THREE RESIDENTIAL UNITS ARE
 TRANSFERRED BY A GRANTOR TO A GRANTEE, AND SUCH TRANSFER IS MADE  WITHIN
 TWO  YEARS  FROM THE PRIOR CONVEYANCE OF THE PROPERTY, INCLUDING BUT NOT
 LIMITED TO TRANSFERS WHICH ARE ALL CASH TRANSACTIONS  AND  TRANSFERS  OF
 PROPERTY  WHICH  HAVE  BEEN  RENTED OUT DURING SUCH TIME PERIOD. THE TAX
 WHICH SHALL BE PAID BY THE GRANTOR SHALL BE AT THE RATE OF:
   (1) SIXTY-FIVE PERCENT OF THE DIFFERENCE  BETWEEN  THE  CURRENT  SALES
 PRICE  AND  THE  SALES PRICE OF THE PRIOR CONVEYANCE WHEN THE TIME SINCE
 THE PRIOR CONVEYANCE OF THE PROPERTY IS LESS THAN ONE YEAR; AND
   (2) FIFTY PERCENT OF THE DIFFERENCE BETWEEN THE  CURRENT  SALES  PRICE
 AND  THE  SALES  PRICE  OF  THE PRIOR CONVEYANCE WHEN THE TIME SINCE THE
 PRIOR CONVEYANCE OF THE PROPERTY IS GREATER THAN OR EQUAL  TO  ONE  YEAR
 BUT LESS THAN TWO YEARS.
   B.  THE TAX DEFINED IN SUBDIVISION A OF THIS SECTION SHALL EXPIRE WHEN
 THE TIME SINCE THE PRIOR CONVEYANCE OF THE PROPERTY IS TWO YEARS.
   C. (1) THE FOLLOWING  QUALIFIED  PERSONS  SHALL  BE  EXEMPT  FROM  THE
 PAYMENT OF THE TAX IMPOSED BY THIS SECTION:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09896-02-1

 A. 6574                             2
 
   (I) PROPERTY OWNERS CONVEYING PROPERTY TO A FAMILY MEMBER.
   (II)  PROPERTY  OWNERS  WHO CAN DEMONSTRATE A FINANCIAL HARDSHIP WHICH
 JUSTIFIES A CONVEYANCE OF PROPERTY IN LESS THAN OR EQUAL TO TWO YEARS.
   (2) THE FOLLOWING PROPERTIES SHALL BE EXEMPT FROM THE PAYMENT  OF  THE
 TAX IMPOSED BY THIS SECTION:
   (I)  PROPERTY  WHICH  WAS CONVEYED FOLLOWING THE DEATH OF THE PROPERTY
 OWNER.
   (II) PROPERTY BEING SOLD AS NEW HOUSING.
   (III) PROPERTY WHICH THE CONSIDERATION OR  VALUE  CONVEYED,  WHICH  IS
 OTHERWISE  SUBJECT  TO  THE TAX IMPOSED IN THIS SECTION, IS LESS THAN OR
 EQUAL TO TEN PERCENT MORE THAN THE CONSIDERATION OR VALUE OF SUCH  PROP-
 ERTY CONVEYED AT THE TIME OF THE PRIOR CONVEYANCE OF PROPERTY.
   (IV)  PROPERTY WHICH WAS CONVEYED TO A MORTGAGEE OR AN AFFILIATE AGENT
 THEREOF BY A MORTGAGOR BE DEED IN LIEU OF FORECLOSURE OR IN SATISFACTION
 OF THE MORTGAGE DEBT.
   (V) PROPERTY WHICH WAS CONVEYED TO A MORTGAGEE OR AN  AFFILIATE  AGENT
 THEREOF  PURSUANT  TO  A  FORECLOSURE SALE THAT FOLLOWS A DEFAULT IN THE
 SATISFACTION OF AN OBLIGATION THAT IS SECURED BY A MORTGAGE.
   (VI) PROPERTY WHICH IS OTHERWISE EXEMPT FROM PAYMENT OF A REAL PROPER-
 TY TRANSFER TAX PURSUANT TO THIS CHAPTER.
   § 3. Section 252-a of the tax law is amended by adding a new  subdivi-
 sion 3 to read as follows:
   3. PROPERTY ACQUISITIONS IN THE AMOUNT OF SEVEN HUNDRED FIFTY THOUSAND
 DOLLARS  OR  LESS  FOR  ONE TO THREE RESIDENTIAL UNITS, INCLUDING ONE TO
 THREE FAMILY HOMES AND CONDOMINIUMS, LOCATED WITHIN THE CITY OF NEW YORK
 SHALL BE EXEMPT FROM ANY TAX OR FEE IMPOSED BY THIS  ARTICLE;  PROVIDED,
 HOWEVER,  THAT THIS EXEMPTION SHALL NOT APPLY TO LEGAL ENTITIES. FOR THE
 PURPOSES OF THIS SUBDIVISION, THE TERM "LEGAL ENTITIES" SHALL MEAN BUSI-
 NESS TRUSTS,  ESTATES,  TRUSTS,  LIMITED  LIABILITY  COMPANIES,  LIMITED
 LIABILITY  PARTNERSHIPS, LIMITED LIABILITY INVESTMENT COMPANIES, ASSOCI-
 ATIONS, JOINT VENTURES, BUSINESS OR NONPROFIT  ENTITIES,  PUBLIC  CORPO-
 RATIONS,  GOVERNMENT  OR GOVERNMENTAL SUBDIVISIONS, AGENCIES, INSTRUMEN-
 TALITIES, OR OTHER LEGAL OR COMMERCIAL ENTITIES.
   § 4. The administrative code of the city of New  York  is  amended  by
 adding a new section 11-2121 to read as follows:
   §  11-2121 IMPOSITION OF TAX ON CERTAIN PROPERTIES. IN ADDITION TO THE
 TAX IMPOSED BY SECTION 11-2102 OF THIS CHAPTER, THERE IS HEREBY  IMPOSED
 ON  EACH  DEED,  INSTRUMENT  OR  TRANSACTION AT THE TIME OF THE TRANSFER
 WHEREBY ANY PROPERTIES OF ONE TO THREE RESIDENTIAL UNITS, INCLUDING  ONE
 TO  THREE  FAMILY  HOMES,  CONDOMINIUMS OR COOPERATIVE UNITS, ARE TRANS-
 FERRED BY A GRANTOR TO A GRANTEE  FOR  A  SALES  PRICE  OF  ONE  MILLION
 DOLLARS  OR  MORE. THE TAX, WHICH SHALL BE PAID BY THE GRANTEE, SHALL BE
 AT THE RATE OF ONE PERCENT OF THE PURCHASE PRICE.
   § 5. Severability. If any clause, sentence, paragraph, section or part
 of this act shall be adjudged by any court of competent jurisdiction  to
 be  invalid,  such  judgment  shall not affect, impair or invalidate the
 remainder thereof, but shall be confined in its operation to the clause,
 sentence, paragraph, section or part thereof directly  involved  in  the
 controversy in which such judgment shall have been rendered.
   §  6.  This  act shall take effect on the ninetieth day after it shall
 have become a law.